1: What do you understand by globalisation? Explain in your own words.

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process
driven by international trade and investment and aided by information technology. Under globalization the countries that hitherto closed to
trade and foreign investment open up their economies and go global. The result is increasing interconnectedness and integration of the
economies of the world.

Under globalization more and more goods and services, investments and technology are moving between countries. In addition to goods,
services, investments, and technology, there is a movement of people who move from one country to another in search of better income,
better jobs or better education.

2: What was the reason for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove
these barriers?
=The government had put restrictions on the import of goods to protect domestic producers from foreign competition because industries
were coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, the government allowed imports of only essential items such as machinery, fertilizers, and petroleum. These restrictions helped to
attain technological capability within the country.

3. Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing
countries demand in return?
=Developed countries encourage developing countries to liberalize their trade and investment for various reasons. They seek new markets
for their goods and services, access to resources, and opportunities for their companies. In return, developing countries should demand fair
treatment, technology transfers, financial support, capacity building, and protection of their domestic industries to ensure balanced and
equitable economic growth.

4. How has liberalisation of trade and investment policies helped the globalisation process?
=Liberalisation of trade and investment policies has helped the globalisation process by making foreign trade and investment easier. Earlier,
several developing countries had placed barriers and restrictions on imports and investments from abroad to protect domestic production.
However, to improve the quality of domestic goods, these countries have removed the barriers. Thus, liberalisation has led to a further
spread of globalisation because now businesses are allowed to make their own decisions on imports and exports. This has led to a deeper
integration of national economies into one conglomerate whole.
4. What stimulated the process of globalisation in India?
or Explain the factors that have enabled globalisation in India.
Ans. The factors which have enabled globalisation in India are
(i) During the past 50 years, several improvements in technology have taken place. For example, in transportation technology, containers are
now used for the transportation of goods. This has led to huge reduction in cost and increases in speed in reaching the markets.
(ii) Telecommunication facilities are used to contact one another around the world and to communicate from remote areas. Interner enables
us to send instant electronic mail and talk across che world at negligible costs.
(iii) The Government of India has removed barriers Am or restrictions to trade set earlier. This step, called liberalisation, has enabled goods
and services to be exported and imported easily. Multinationals have been allowed to set-up factories and offices in India. Due to this, there
is greater integration of production and markets across countries.
Q. 6. Explain the relation between liberalisation of foreign trade and trade barriers.
=The following points state the relation of liberalisation of foreign trade and trade barriers
(i) Liberalisation of foreign trade refers to removing barriers or restrictions set by the government.
(ii) Governments can use trade barriers to increase/decrease foreign trade and to decide what kinds of goods and how much of each should
come into the country. On the contrary, the government has much less restrictions. Businesses are allowed to make decisions freely about
what they wish to import or export.
(iii) Trade barriers aim to protect the domestic producers from foreign competition. While in the case of liberalisation the government wants
to improve the performance of domestic producers.
(iv) Trade barriers refer to the laws, institutions or practices which make trade between countries more difficult or expensive than trade
within countries. For example, tax on imports, limitation on imported goods i.e. quotas, etc. While removing such barriers or restrictions set
by government is called liberalisation of trade.
7. What is globalisation? Explain two positive and two negative impact of globalisation.
=Globalisation is the process of integration and interconnectedness between countries.
Positive Impact of Globalisation
(i) Availability of variety of products with greater choice and quality that too at affordable price.
(ii) Creation of new jobs and higher standard of living.
Negative Impact of Globalisation
(i) Thousands of uneducated and unskilled labourers have become jobless due to closure of domestic units.
(ii) Most of the small industries like toys, tyres, plastics, dairy products have been hit hard due to foreign competition.
Q. 8. Why had the Indian government put barriers to foreign trade and foreign investments after independence? Analyse the reason.
=Trade barrier are rules and regulations that regulates foreign trade. Indian government put barriers to foreign trade after independence
because of the following reasons
(i) To protect the domestic producers within the country from foreign competition.
(ii) The competition from importers would have crippled the new born industries of India. In such a situation, imports of only such
commodities were allowed which were quite necessary such as machinery, fertilisers, petroleum etc.
(iii) During 1950s and 60s, Indian industries were not prepared for exports so foreign trade would not have been profitable at that time.
Q.9. What do you understand by liberalisation of foreign trade?
=There are two restrictions on foreign trade (i.e trade of goods and services between two sovereign nations) which are removed by
liberalisation of foreign trade.
(i) Entry tax or customs duty This is levied on goods being imported into a country to protect the local producer of similar goods. This makes
the foreign goods costlier, so that the local goods can compete with it on price. Under liberalisation, ideally there will be no customs duty on
any imported product.
(ii) Quotas or restrictions on the quantity being imported in a specified period This will prevent cheap foreign goods being dumped' or
'flooding' the market of another country. Under liberalisation, there will be no restrictions on the quantity of goods being imported from any
country.
Q. 10. Describe the contribution of multinational corporations to promote globalisation.
=The importance of multinational companies (MNCS) in the process of globalisation is as follows:
(1) MNCs sell and produce various products globally. They integrate various countries and their markets by their expanded branches.
(2) It is because of the expansion of these Multi national Corporations that advanced technology reaches the remotest countries pracross the
world.
(3) Greater foreign trade and investment by MNCs help in quicker integration of ooed production and markets across various COuntries.
(4) MNCs control the production, price, quality. delivery and labour conditions for producers across various countries, this brings markets
and producers in different countries closer.
Q. 11. What is globalisation? Describe the role of Multinational Corporations globalisation process.
Or Analyse the importance of multinational companies in the globalisation process.
Ans. Globalisation is the process of rapid integration or interconnection between countries. MNCs play an important role in the globalisation
process. , thus integrated
i. They compete with the local producers directly even after being miles away.
ii. Their working leads to exchange of investments and products which leads to interconnection between diverse countries.
Iii. MNCS control production in more than one country
iv. They collaborate with smaller industries helping them to be more practical.
v. Being economically affluent they are able to make investments in various counties
vi. They are also technically advanced promoting globalization
vii. They offer higher income, better jobs and better education.
viii. More goods are available globally at a cheaper rate and a good quality.
ix. They provide greater opportunity of choices.
12. Which factors have stimulated the globalisation process?
=The following factors have simulated the globalisation process
i) Improvement in transportation: In the last fifty years, there have been a improvements in transportation technology. This has made faster
delivery of goods across long distances possible, at lower costs.
(ii) Development in information and communication technology: Technology in the areas of telecommunication and computers has been
advancing rapidly.
(iii) Telecommunication: Telecommunication facilities like telephone, telegraph, machines, fax are used to connect people in the world. This
has been made possible due to satellite communication devices.
(iv) Computers: They have now entered almost in every field of activity, In the amazing world of internet, we can obtain and share
information on almost anything.
(v) Internet: Internet also allows us to send instant electronic mail (e-mal) and talk (voice mail) across the world at negligible cost. Even the
payment of money from one bank to another can be made through e-banking.
Q. 13. How has technology stimulated the globalisation process? Explain with examples.
=Technology and globalization:
(1) Improvement in transport technology has made faster delivery of goods across long distances at lower costs.
(2) Information and communication technology like computer, internet, and telecommunication has developed.
(3) Telephones (mobiles, fax) are used Contact one another.
(4) Information is being accessed easily even to the remote areas.
(5) Satellite communication devices are of great use.

13. What is an MNC

= A multinational company is a company that owns or controls production in more than one nation.

14. What do you understand by the term ‘Investment’?

=The money that is spent to buy assets such as land, buildings, machines and other equipment is called ‘Investment’ which would later fetch
them profits.

15. What is a ‘trade barrier’?

=Tax on imports by the Government is called ‘trade barrier’. It is called a barrier because some restrictions have been set up.

16. What does the term ‘liberalisation’ mean?

= Removing barriers or restrictions set by the government is known as ‘liberalisation’.

17. What do you mean by liberalisation of foreign trade?

= (i) Removing barriers or restrictions set by the government is known as liberalisation.

(ii) With the liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.
(iii) The government imposes lesser restrictions than before and is therefore, said to be more liberal.
18. Why are trade barriers imposed on the foreign trade and investment in a country? Explain with the help of two illustrations.

=Trade barriers are used by the governments –

(i) To increase, decrease or regulate foreign trade.
(ii) To decide what kinds of goods and how much of each, should come into the country.
(iii) To protect the producers within the country from foreign competition.

19. Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.

=Removal of barriers on foreign trade and foreign investment:

(i) Barriers on foreign trade and foreign investment were partially removed.
(ii) Goods could be imported and exported easily.
(iii) Foreign companies could set up factories and offices here.
(iv) Opportunities for Indian producers to compete with producers around the globe.

20. Why had the Indian government put barriers to foreign trade and foreign investments after independence? Analyse the
reasons.

= Indian government has put barriers to foreign trade and foreign investments after independence because:

(i) It wanted to protect the producers within the country from foreign competition.

(ii) As the industries were just coming up in 1950s and 1960s, the competition from inputs at that stage would not have allowed these
industries to come up.

(iii) Indian allowed imports of only essential items such as machinery fertilizers, petroleum, etc.

21. Which factors have stimulated the globalisation process?

=The following factors have stimulated the globalisation process.

(i) Improvement in transportation: In the last fifty years, there have been a lot of improvements in transportation technology. This has made
faster delivery of goods across long distances possible, at lower costs.

(ii) Development in information and communication technology: Technology in the areas of telecommunication and computers has been
advancing rapidly.

(iii) Telecommunication: Telecommunication facilities like telephone, telegraph, mobiles, fax are used to connect people in the world. This
has been made possible due to satellite communication devices.

(iv) Computers: They have now entered almost in every field of activity. In the amazing world of internet, we can obtain and share
information on almost anything.

(v) Internet: Internet also allows us to send instant electronic mail (e-mail) and talk (voice mail) across the world at negligible cost. Even the
payment of money from one bank to another can be made through e-banking.

22. What are the various ways in which countries can be linked?

=: Besides the movement of goods, services, investments and technology, there is one more way in which the countries can be linked.
(i) This is through the movement of people between countries.
(ii) People usually move from one country to another in search of better income, better jobs or better education.
(iii) In the past few decades, however, there has not been much increase in the movement of people between countries due to various
restrictions.

23. How did rapid improvement in technology stimulate the globalisation process?
OR
Describe the contribution of technology in promoting the process of globalisation. [CBSE Delhi 2017]

=: (i) For the past fifty years, several improvements in transportation technology have been made. It has helped in the faster delivery of goods
across long distances at lower costs.
(ii) Even more remarkable have been the developments in information and communication technology. Technology in the areas of
telecommunications, computers, internet has been changing rapidly.

(iii) Telecommunication facilities like telegraph, telephone including mobile phones or fax, etc., are used to contact one another around the
world to access information instantly and to communicate from remote areas.

(iv) There is an amazing world of internet, where we can obtain and share information on almost anything we want to know. Internet also
allows us to send instant electronic mail and talk across the world at negligible costs.

24. What is liberalisation? Describe any four effects of liberalisation on the Indian economy. [CBSE (AI) 2017]

=: Removing barriers or restrictions set by the government is known as liberlisation:

Impacts of Liberalisation are as follows:

(i) Competition would improve the performance of producers within the country.

(ii) Barriers on foreign trade and foreign investment were removed to a large extent. This meant that goods could be imported and exported
easily.

(iii) Foreign companies could set up factories and offices to boost up production.

(iv) It allows to make decisions freely.

(v) The competition would improve the performance of producers within the country since they have to improve their quality.

25. Explain with an example as to how information technology is connected with globalisation.

=: (i) Information and communication technology has played a major role in spreading out production of services across countries.

(ii) For example, a news magazine published for London readers to be designed and printed in Delhi.
(iii) The text of the magazine is sent through internet to the Delhi office.

(iv) The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.

(v) The designing is done on a computer. After printing, the magazines are sent by air to London.

(vi) Even the payment for designing and printing from a bank in London to a bank in Delhi is made instantly through e-banking.